Residential Renewal in the Urban Core [Reprint 2016 ed.] 9781512805635

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Residential Renewal in the Urban Core

Institute for Urban Studies University of Pennsylvania William L. C. Wheaton Director

Residential Renewal in the Urban Core An analysis of the demand for housing in Center City Philadelphia, 1957 to 1970, with reference to the Washington Square East Redevelopment Area

by Chester Rapkin and William G. Grigsby

P h i l a d e l p h i a • University of Pennsylvania Press

© 1960 by the Trustees of the University of Pennsylvania Published in Great Britain, India, and Pakistan by the Oxford University Press London, Bombay, and Karachi Library of Congress Catalog Card Number: 59-15673

Printed in the United States of America

This study was prepared under contract w i t h

THE REDEVELOPMENT AUTHORITY OF THE CITY OF PHILADELPHIA

To ERNEST M. FISHER friend and teacher

Webb & Knapp. Inc.

FOREWORD Without question the city of Philadelphia has assumed a position of leadership in the massive program of city rebuilding that is now in progress throughout the United States. Although the program is still in its early stages, both locally and nationally, the breadth of its scope is unmistakable. Even at this point several h u n d r e d cities in all corners of the land can display new homes, new public and private nonresidential buildings, restored historical monuments, and graceful open spaces, on sites that short years ago produced little b u t dismay. T h e work in process will enlarge these achievements many times over, and the plans for even the foreseeable f u t u r e will materially improve the entire u r b a n environment. W e can now look forward to an acceleration in the pace of accomplishment. Much of the initial stage of the rebuilding process was devoted to devising, testing, and developing the necessary legal, governmental, and business tools, and these instruments have now reached a workable stage. Moreover, the scope of the process has been enlarged to include the conservation and rehabilitation of existing structures, as well as clearance and reconstruction. Of greater importance, perhaps, is the fact that the possibilities inherent in o u r cities have captured 7

8

Foreword

the imagination of the people and have given them a vision that goes beyond the physical structures themselves. In Philadelphia the renewal program at present includes seventeen projects varying widely in character and in scope. Some of the projects have been completed; others are under construction or in the planning stages. T h e Washington Square East Redevelopment Project, with which this study is concerned, is being undertaken by the Philadelphia Redevelopment Authority in conformity with plans of the City Planning Commission. It is one of several projects in downtown Philadelphia that together comprise a vast program encompassing the entire central area from Lombard to Spring Garden Street and from the Delaware to the Schuylkill River. It is estimated that public and private investments of approximately one billion dollars will be required to implement the twenty to twentyfive year plan for center city. Upon its successful completion, Philadelphia will possess a central core that is truly articulated with the economic and social functions of a modem metropolis. T h e Washington Square East Redevelopment Area (better known as Society Hill) is a section of old Philadelphia that is rich in the symbols of American tradition. One of its boundaries is Independence Square, and in the surrounding area lived many of the men and women who helped form the republic. Thus, the revivification of this area is bound to have meaning and influence far beyond its immediate scope. T h e body of this report is devoted to an analysis of the demand for housing in the redevelopment area after reconstruction. Its purpose is to provide the officials of government concerned with the rebuilding of the city with data on the current state of the market and its long-term potentialities. T h e study itself was commissioned by the Philadelphia Redevelopment Authority and conducted by the Institute for Urban Studies, University of Pennsylvania. Because of the unusual type of market and the strategic importance of the area in the rejuvenation of center city, the Authority felt a

Foreword

9

CITY OF PHILADELPHIA AND ITS C E N T R A L D I S T R I C T .

-M45-U!

REDEVELOPMENT H|G

AREAS

S O C I E T Y H I L L REDEVELOPMENT BOUNDARY - C E N T R A L

DISTRICT

¡ ^ J AREA

10

Foreword

particular need for such an analysis. Even though formal housing market studies have been conducted throughout the country for well over two decades, most of the work has been on a city or metropolitan area basis and very little on the more difficult problem of analysing the market in smaller areas. T h e conduct of this study has been greatly facilitated and expedited by the fact that the Institute had undertaken a study of potential housing demand in the Eastwick Redevelopment Area. T h e Eastwick study included a sample survey of Philadelphia population and households and numerous estimates and projections which also served as a basis for many of the Society Hill calculations. T h e accumulated body of data and experience made possible economies of time and cost to the Authority. In u n d e r t a k i n g our work we have been repeatedly heartened and gratified by the generous and friendly fashion in which busy people have given us their time, shared their experiences, and made available their statistical records. We, therefore, welcome this traditional opportunity to thank the following people for their invaluable aid: T o : Martin Meyerson, Williams Professor of City Planning, Harvard University, and Vice-President of American Council to Improve O u r Neighborhoods ( A C T I O N ) , and to Fortune magazine for permission to utilize the results of their field survey of the residents of downtown Philadelphia. T o : Robert Adelsker, Jerome Blum, J o h n L. Graham, Jr., Harry K. Madway, C. E. Moynihan, Dr. Joseph J. Noonan, Clifford Pascoe, and T . E. Whitehead for sharing their experiences with us in the rental and management of downtown apartments and for facilitating interviews with apartment residents. T o : J o h n J. Herd, Milton Hollander, Earl James, and Charles P. LaGrossa for providing us with a better understanding of the forces at work in the rejuvenation of downtown Phila-

Foreword.

11

delphia and for giving us valuable insights into the market for single family homes and the problems of rehabilitation. T o : Morton Baratz, Robert O. Crockett, Mason C. Doan, Herbert Gans, Frank S. Kristof, Louis Loewenstein, William H. Ludlow, Sherman J. Maisel, William W . Nash, Una K. Oberman, Kirk R. Petshek, Arthur T . Row, John E. Teller, David A . Wallace, Robert C. Weaver, and Louis Winnick for helpful comment and constructive criticism of early drafts of this study. T o : Lillian W . Israel for an outstanding job of interviewing and Grace Milgram for material aid in preparing the final manuscript for publication. T o : W e b b & Knapp Inc. for permission to use an artist's rendering of redeveloped Society Hill, and Attilio Bergamasco for preparing the necessary maps. T o : Gwendolyn Blanks, Promila Coelho, Herbert Kay, Richard Loewald, Barbara Siegle, and Thomas Taylor for research and secretarial assistance, and good humor and diligent effort throughout the project. T o : More than 500 Philadelphia families who gave up a portion of their leisure time to be interviewed. A n d T o : Professor William L. C. Wheaton, Director of the Institute for Urban Studies, for assisting us in the original conception of this study and for his unfailing encouragement and incisive comments. C. R. W . G. G.

CONTENTS Page 7

Foreword I. Introduction—-The Area, the Plan, and the Method of Analysis T h e Area T h e Renewal Plan T h e Method of Analysis Contents of the Report II. Recent Developments in the Housing Market New Construction T h e Market for Single Family Homes Rental Housing Market Vacancy Rates T h e Question of the Central City Market III. T h e Demand for High Rent Apartments in Central Philadelphia

25 26 29 31 32 33 33 35 36 37 38 39

Central City Apartment Residents Profile of Characteristics Tendency Ratios Population and Household Growth

43 43 45 52

Shifts in Employment Patterns Employment Growth in Center City Increase in "Nonemployed" Household Heads Increase of Other Employment Impact of Employment Changes on Center City Market

55 56

61

Anticipated Income Growth and Distribution

63

Rate of Growth in Real Income 13

58 60

65

14

Contents

Page

Changes in Income Distribution Effect of Income Increase on Market Potential

65 68

Expected Changes in the Existing Stock T h e Backlog of Demand T h e Preference for Center City Living

70 74 75

T h e Question of Changing Preferences Recent Preference Shifts Reservoir of Demand Implications for the Future Downtown Apartment Demand 1957-1970—A Summary

76 79 81 85

Household Growth Employment Distribution Income Change Obsolescence of Supply Backlog of Demand Preference Changes Vacancy Allowance Implications IV. T h e Market for Single Family Homes Household Characteristics Projection of Household Growth, Employment, and Income Changes in the Existing Stock Changing Preferences Conclusions and Recommendations V. T h e Demand for Rehabilitated Apartment Units Household Characteristics

86 86 87 88 88 88 88 88 88 90 93 94 94 95 100 102 103

Contents

15

Page T h e Growth Market Replacement Market Changing Preferences Summary VI. Summary of Future Housing Demand in Center City and the Outlook for Washington Square East T h e Estimate of Center City Demand T h e Competitive Position of Washington Square East Implications for the Renewal of Philadelphia Index

105 106 107 109

110 110 114 116 129

TABLES Table

Page I

II

III

IV

V

VI

VII

VIII

Inventory of Apartment Units by Rents Per Room and by Type of Unit, Center City High Rent Apartments, 1957 Selected Household Characteristics of Residents of High Rent Center City Apartments Compared with All Households, Philadelphia Standard Metropolitan Area, 1957 Number of Households by Family Type, Age of Head, Family Income, and Employment Location, Philadelphia Center City High Rent Apartments, 1957 Number of Households by Family Type, Age of Head, Family Income, and Employment Location, Philadelphia Standard Metropolitan Area, 1957 Per cent of Households in Philadelphia Standard Metropolitan Area Living in Center City Apartments by Family Type, Age of Head, Family Income, and Employment Location, 1957 Number of Renter Households by Family Type, Age of Head, Family Income, and Employment Location, Philadelphia Standard Metropolitan Area, 1957 Renter Households as a Per cent of All Households in Philadelphia Standard Metropolitan Area, 1957 Per cent of Renter Households in Philadelphia Standard Metropolitan Area Living in Center City Apartments by Family Type, Age of Head, Family Income, and Employment Location, 1957 17

41

44

46

47

48

50

51

52

Tables

18

Table IX

XI

XII

XIII

XIV

XV XVI

XVII XVIII

Projected Number of Households by Age of Head, Philadelphia Standard Metropolitan Area, 1957-1970 Impact of Increase of Households in Philadelphia Standard Metropolitan Area from 1957 to 1970 on Center City Demand for High Rent Apartments During the Same Period Increase of Nonworking Household Heads, Philadelphia Standard Metropolitan Area, 19571970 Impact of Increase of Nonworking Household Heads in Philadelphia Standard Metropolitan Area on Demand for Center City High Rent Apartments, 1957-1970 Projected Increase in Households by Employment Location of the Head, Assuming Two Different Growth Rates for Central Business District, Philadelphia Standard Metropolitan Area, 1957-1970 Impact of Employment Growth and Redistribution in Philadelphia Standard Metropolitan Area on Demand for Center City High Rent Apartments Assuming Two Different Growth Ratios for Central Business District, 1957-1970 Real Income in the United States, 1929-1955 Trend of Real Income for Nonfarm Families, Showing Percentage Increases over 1947 for Medians of Each Fifth, 1950-1954 Average Incomes of Farm and Nonfarm Families, 1935-36 and 1954, and Per cent Increases Per cent of Aggregate Wage or Salary Income Received by Each Fifth of Wage or Salary Recipients Ranked by Income, 1939-1951

Page

53

54

58

59

60

62

63 64

66

Tables

Table XIX

XX

XXI

XXII

XXIII

XXIV

XXV

XXVI XXVII

19 Page

Effect of Increase in Real Income on Family Income Distribution of Households, Philadelphia Standard Metropolitan Area, 1957-1970 Impact of Projected Increases in Real Income on Demand for Center City High Rent Apartments, 1957-1970 Median Ratio of Gross Rent to Income by Income Class, Families and Primary Individuals Living in Households, Philadelphia Standard Metropolitan Area, 1950 and 1956 Gross Rent as a Per cent of Income of Families and Primary Individuals, Philadelphia Standard Metropolitan Area, 1950 and 1956 Previous Place of Residence of Households Living in Center City High Rent Apartments, December 1957 Present and Previous Place of Residence of Households that Moved in 1955 and 1956, by Race, Philadelphia Standard Metropolitan Area Sources of Incremental Demand for High Rent Apartments in Center City Philadelphia, 1957 to 1970 Inventory of Medium and High Value Single Family Homes in Center City Philadelphia, 1957 Summary of Estimated Range of Demand for Dwelling Units in the Middle and Upper Rent and Price Levels, Center City Philadelphia, 1957 to 1970

67

68

69

70

77

79

87 92

113

APPENDIX TABLES Table Page I Gross Rent Paid by All Renter Households and by Renters Who Moved to Their Current Residence in 1955 or 1956, Philadelphia City and Standard Metropolitan Area, December 1956 120 II Value of Single Family Dwelling Units of All Owner Occupants and of Households T h a t Purchased Homes in 1955 and 1956, Philadelphia City and Standard Metropolitan Area, December 1956 121 III Characteristics of Residents of Center City High Rent Apartments and Medium and High Price Single Family Homes Compared with All Households in Philadelphia City and Philadelphia Standard Metropolitan Area, 1957 122 IV Length of Residence in Center City, Occupants of High Rent Apartments and Medium and High Price Single Family Homes, 1957 125 V Type of Structure of Previous Residence, Current Occupants of High Rent Apartments and Medium and High Price Single Family Homes, Center City Philadelphia, 1957 126 VI Proportion of Residents of Center City High Rent Apartments and Medium and High Price Single Family Homes Who Own or Rent a Second Dwelling Unit in Another Area, 1957 126 VII Extent of Satisfaction with Dwelling Unit and Location, Residents of High Rent Apartments and Medium and High Price Single Family Homes, Center City Philadelphia, 1957 127 VIII Advantages and Disadvantages of Living in Center City Expressed by Residents of Center City High Rent Apartments, Philadelphia, 1957 128 21

Residential Renewal in the Urban Core

I

Introduction: The Area, the Plan, and the Method of Analysis

It is almost self-evident that the likelihood of success of any planning endeavor is enhanced by the extent to which it conforms with and utilizes existing economic currents. Perhaps economic considerations are nowhere more strategic than in the renewal and redevelopment undertakings that now loom so large and dramatically in the planning programs of urban areas. Renewal or redevelopment by its very nature, in part, runs counter to trend, and it is therefore essential to determine whether the specific objectives that cannot or will not materialize in the normal course of market development have the economic potentiality necessary for realization. Economic feasibility depends largely upon the market potential for the facilities to be provided in the renewal area. T h e magnitude of demand will determine the rate at which the new improvements will be absorbed. Were it possible to wait long enough, given any positive level of demand, the entire supply would ultimately be rented or sold. But unoccupied space is not costless—either in an economic or social sense. Operating expense and debt service continue after reconstruction; and families and business firms are forced to move prior to renewal. T h u s the essential significance of a demand estimate lies in the aid that it provides in formulating a sound renewal plan and in specifying a construction schedule for the various types of facilities contemplated. T h i s study is concerned with estimating the future demand for housing in the central core of Philadelphia, in order to adjudge the dimension of the market for dwelling units to be 25

26

Residential

Renewal

in the

Urban

Core

constructed in the Society Hill Renewal Area. Although it deals with but a single city, the cross currents that it investigates are characteristic of the larger American metropolis, and the methods that are employed may be applicable to other similar areas. It is hoped, therefore, that this work will contribute to the widespread efforts to restore vitality to the declining central sections of our urban centers. T o put the analysis in perspective, this chapter is devoted to a brief history and description of the area and to the plan for the future. These expository materials are then followed by a general statement of the methods pursued in the study and to a preview of the contents of the remainder of the report.

THE

AREA

Society Hill is a section of the Old City. These two sobriquets indicate the fact that the redevelopment area is one of the earliest places of settlement in Philadelphia and notes its association with the early Society of Free Traders. Scattered throughout the district are many buildings of historical significance, some of which are symbols of the republic. T h e r e yet remains a sprinkling of fine homes of Philadelphia's first families, and several are still occupied by their descendants. For a period this section was among the most fashionable in the city, but throughout this interval it has also been an area of contrasts. In the narrow back alleys behind the handsome structures were huddled smaller buildings housing servants and laborers. As early as the colonial era and in the first days of the nation, the streets to the south of the Old City were lined with the homes of a growing number of freedmen who formed the first center of Negro population in Philadelphia. Approximately a century ago, the elite began to drift westward as the city expanded. For a time they moved north as well, settling temporarily in the vicinity of Logan Circle, but by the late nineteenth century they had definitely established

Introduction:

The Area, the Plan, and the Method

of Analysis

27

themselves in the Rittenhouse Square area. Society Hill, in the meantime, passed to families lower on the income and social scale, many of whom were immigrants from central and south Europe. At the same time the area began to suffer from the scattered growth of nonresidential uses. T o the east, docks and warehouses expanded and the wholesale food distribution center assumed regional proportions. Office buildings of the old financial and insurance district grew up on the streets adjoining State House Row. Farther to the north, Market Street continued to develop as the center of retail trade for the city while South Street, some half-mile removed, formed the axis of what at one time was the largest Jewish shopping center in Philadelphia. Today, it is largely isolated from the Jewish residents who have moved to scattered areas throughout the region. From 1920 to 1940, both Society Hill and Rittenhouse Square experienced further change as middle and upper income families moved to outlying locations. Vacated single family structures were placed in other types of residential, and in nonresidential, use. In the Rittenhouse Square area conversions were primarily to professional offices and to a limited number of small apartments. In Society Hill, the conversions tended to be to commercial and industrial use, and also to rooming houses. As early as the 1920's, efforts were made to rehabilitate sections of the center city in such places as Elfreth's Alley and Camac Street. It was not until the 1940's, however, that rehabilitation exceeded token levels. Largely limited to the swath between Walnut and Pine, it has occurred principally in blocks west of Ninth Street which have now regained a considerable measure of their former charm. Residential renewal has been accompanied by changes in other land uses as well. T h e closing of the Camden Ferry in 1952 hastened the general westward movement of retail trade. T h e demolition of the Chinese Wall removed a blight and a

28

Residential

Renewal

in the Urban

Core

barrier, and made possible the release of a major new development that stimulated the area in other ways: employees in the new office buildings increased housing demand; the construction itself reconfirmed the westward movement of the city's core; and the quality and appearance of the new structures improved the status of the area. East of Ninth Street to the Delaware River, relatively few units have been rehabilitated or restored, but the number has been severely limited by the blighted environment, particularly the old Dock Street market. Interest in the area has been revived, however, by the restoration of Independence Hall, the construction of the Mall, and by the activities of civic groups. T h e introduction of private rehabilitation indicates the basic strength of the area, but without public redevelopment there is little likelihood that its full potentialities can be realized. In a sense Society Hill is a classic renewal area. Despite its excellent location, the value of the land is depressed by the heavy hand of blight. Five out of six residential structures are substandard. Land coverage is excessive, ranging from 60 to 100 per cent. Many commercial and industrial structures occupy the entire lot from street to street, and most residential buildings are singularly devoid of usable open space. Land uses are unrelated and incompatible. Retail trade is too diffuse and the scattered shops make no provision for off-street parking or loading. Many factory buildings are obsolete. T h e street system, the schools, the recreational facilities, and other community services all are sadly deficient; and as one would expect from this array of defects, sections of the area are abysmally ugly. What makes this area propitious for renewal are not its liabilities, but its assets, many of which have already been enumerated. Located in the heart of the city, it is directly accessible to all of the employment, educational, and recreational opportunities, as well as to the variety of goods and services that the central district of a metropolis can offer. It borders on the

Introduction:

The

Area,

the Plan,

and

the Method

of Analysis

29

Delaware River, an advantage that has been pre-empted by industry for too long a time. In addition to this inventory of physical assets, the area has unequalled values and associations by virtue of its role in American history.

THE RENEWAL

PLAN

T h e Washington Square East Redevelopment Area contains 127 acres. It is bounded by Walnut Street on the north, Delaware Avenue on the east, Lombard Street on the south, and Seventh Street, South Washington Square, and Sixth Street on the west. T h e plan for the area has several objectives which include the clearance of the old produce market, the preservation of the historical and architectural significance of the area, and the development of a residential neighborhood. About one-half of the area will be acquired for clearance and substantial reconstruction. A major portion of the clearance area will be devoted to high rise apartments and new and rehabilitated structures. Buildings of historic significance will, of course, be preserved as will most of the commercial structures along Walnut Street. A large share of the buildings, most of which are located south of Spruce Street, will remain in the hands of private owners who will be encouraged to carry out voluntary rehabilitation in harmony with the plan for the whole area. T h e residential section of the renewal plan provides for approximately 2,000 new apartment units mostly in multi-story buildings, the bulk of which will be concentrated in the Dock Street area and the remainder distributed among other locations. In addition, approximately 130 new single family units will be erected and about 300 existing homes reconstructed as private residences. Another 100 structures will be converted into 450 to 500 apartment units. Greenways and institutional, community, and commercial facilities will complete the development.

Residential

30




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